When we say that ten years working in the market, we first of all say that it is ten years of experience working with people.

The lion's share of the stock market is dedicated to technical analysis, trading systems, mathematical modeling. For those useful things such as the loss of the so-called human factor. While the psychology of investor behavior is largely determined his victories and defeats. By observing the reaction of the players in different situations divided the executive director of the investment company «TSERIH Capital Management» Vladislav Kovalchuk.

«Currency speculator»: You work on the Russian stock market almost since its inception. Sometimes you have accumulated mass of observations of human behavior that relate to the category of «players». Does their behavior, how they operate in the market, some interesting patterns?Vladislav Kovalchuk: People who work in the stock market, it seems surprising act in different situations. Do not discovered America, when I say that all traders, from novice to veteran actor, admit mistakes, which are often associated with psychology. For example, a newcomer has made some good deals and believed to be a professional. For any other business, such as sales, this is normal. Appears self-confidence in their actions. It may be somewhat overstated, but that in itself is beginning to work on professional development - pave the way to success.

On the stock market a lot harder, a manifestation of such feelings and can become a psychological trap. For example, an investor engaged in intraday trade, get in a few days, a positive result. It begins to seem that he can outflank the market and a couple of days gets a loss. And here begins the most important thing - the player thinks he has done everything correctly, could still beat the market and begins to methodically repeat mistakes and to continue to consider them random.

«AC»: How long can this last peak?VK: As they say, «the light at the end of the tunnel is», but not the end of the tunnel. Gradually, the player loses the amount won. Then, from the first trap, he gets straight to the second - a strong desire to win back lost, do not analyze their misses, and, accordingly, without changing the tactics work. «In fact, acting in a way, I am in the beginning of a well-earned!» - Thinks the player. As a result of loss increases, and the investor could lose starting capital.

Or, for example, when you close the position the player wants to sell a little bit better than what is currently the market offers. He starts to chase for the price, the price goes against them, reducing the position. Turning to professional slang - in an attempt to catch «pips» trader loses «figures». Consider another situation - a player aims to capture at least a minimal profit, but it is absolutely not willing to close down loss-making position. As a result, it can only exacerbate the loss.

Such examples are many. Most problems are only two motives - the desire by all means was not possible to miss profit and the fear of losing ones. And emotions and too much arrogance leads to mistakes, not only beginners but also experienced players, who then are puzzled as to once again managed to come to the same rake.

«AC»: And what behavior would be correct in this situation?VK: Stop and think, look at the situation from the outside. Forget about losing and start from scratch. It seems that everything is done very simply. However, as all the excellent know, is difficult to rise above their emotions and objectively analyze the situation.

«AC»: So you need to consult more with other players?VK: On the market, each busy with his / her work, people earn money, and not always even if you want help from colleagues in the workshop have an opportunity to engage in other people's difficulties. We solve this problem in another way - in our institute, there is personal managers. This means that any trader can always count, including, in consultation with his personal manager, and specialist analytical services company.

For large customers, we have such a service as individual trading advice. In this case, other than a personal manager and analyst, to provide services to the client connects personal trader. He shares his views on the situation and, on request, offers suggestions of conduct on the market.

«AC»: As far as investors are listening to these recommendations?VK: It depends on whether the person is ready to even think about the meaning of our recommendations. When he calmed down and examined, it has already made a step in the right direction. Of course, this does not mean that he starts to win, but at least it has less chance to get in the trap, which came before him, are and will get thousands of players worldwide. In general, customers in most cases, followed by our recommendations. Thus, an individual trading advice is now very in demand. Unfortunately, our resources in this area for obvious reasons, are limited, and we offer this service only to large investors. However, if we say exactly that to help a person to objectively look at what is happening, adjust their behavior to avoid the obvious mistakes, then communicate with the manager is quite enough. In addition, we regularly hold seminars for both beginners and more experienced players by our Training Center. For beginners it is a good chance to not only learn basic elements, but also listen to the professionals who «go to the light».

«AC»: That is a personal manager in part serves as a psychologist?VK: Well, that gives the opportunity to sell all the brokers - who is a more interesting, someone less interesting. But access to the market - this is only part of the iceberg ...

Linda Bradford Raška is a professional trader since 1981. She began her career as a stock exchange floor trader, and later organized a company to manage money "LBRGroup". Linda Raška was presented in the book Jack SCHWAGER "The new market wizards" and is well known for her own book "The Virtuosi of Wall Street." She also published a great number of educational articles on the short sale in the markets.

As experienced and novice traders spend a lot of time trying to understand the model on the markets - and displays graphics on a set of time scales, seasonal trends in some time months or years, the mood and data flow of funds. It is clear that there are many different ways to analyze markets. By analyzing the model, the trader is looking for a sufficient reason to conclude a bargain or to withdraw from the existing one. Markets monitored to detect subtle changes in the core ratio of supply and demand, and once observed "initial condition", which indicates a situation where there is a possibility of profit, trading just a matter of clicking on the "trigger" to enter the market, the definition of primary level of risk and then manage trade properly in response to market action. Trader is managed trade, watching the confirmation or non-confirmation of his assumptions. But why the trade will never think of such a light in real life? In the end, this is just a game of numbers and does not require much time to study the basic rules.

Perhaps this is because the trade is usually 10 per cent consists of studying the market and 90 per cent of the study itself.

Unfortunately, if the trader does not know itself, the market - this is a very expensive place to learn. If traders devote half the time they spent on market research, to examine their own behavior, the benefits would be much more than access to any training courses, videos, system or technical book ever written on the markets. The trade balance suffers when those transactions are not concluded, the trade is not respected and carried out "voluntary mistakes." Fortunately, traders can learn to identify those personal behaviors that lead to loss of attention and concentration, in addition to other bad habits.

Voluntary errorLet's look at some of the usual model, leading to voluntary errors. Consider a trader who carefully monitor the market for a particular situation and, for some reason, the conclusion of the transaction skipped. He then enters into a transaction spontaneous, upset that missed the first one. The market makes a good motion, and the expense increases. Trader then proud of profit, which he did, becoming negligent and relaxed, which leads to a prolonged period of recession. He misses the point of exit for fixed gains of the winning transaction and allows the position to become profitable in a loss. Upset, he then averaged in the hope, at least attempt to compensate for the loss.

Often bad behavior is the result of emotional reactions. However, in some cases simply the result of bad habits. The aim is to make trade as automatic as possible, and thus the ultimate goal should be to form a habit of winning. As Socrates said, "We are what we repeatedly do. Excellence, then, is a habit." Here are some tools that can help traders determine the behavioral patterns that prevent them and, further, to eliminate them or at least return to the control. No less important is the ability for traders to identify behavior that is correct, because this is the first step to build confidence.

Identifying problemsAlways Identify a specific problem or challenge. Here is a list of questions that will help identify areas that should draw more attention. Is there any time of day when the most losing the deal? Some traders achieve best results the morning and some afternoon. What types of transactions lead to more consistent results? Many traders have shown their best results, trading at a short time scale, and not giving a big picture raise doubts about the benefits of trade in the longer term. For others, attempts to make short-term skalpirovanie may result in an excess of the trade regime and frequent rapid spread. Is there a game plan or program trading, which is defined before the start of the trading day, and how close this plan implemented? Are there any extraneous factors from the outside, such as personal relationships, financial problems, or disease affecting the reasoning trader or distracting him? Is the days of big losses due to emotional or decrease alertness, and whether the trader has a more emotional or reactive to these days? Is the general peregoranie, leading to bad habits, lack of concentration or inertial excess trading regime? These are some of the reasons that normal, intelligent people can be caught in the destructive behavior. So, is it possible to break the patterns that lead to more emotional market downturns? And, as a trader can move it to the next level, knowing when things go right, and thus increasing the size of the best deals?

Body LanguageFor most people it is very easy to learn to recognize how their body reacts to different conditions. The athlete, who is in his plate 'can acutely feel fully relaxed. On the other hand, an athlete who "broken the rails, will be tense, worried and suetliv. Ability to pay attention to the physical reaction can help a trader to confirm when he is in good behavior, or violating their own rules. It can also learn to recognize that his body feels when the deal succeed and that it feels at least a transaction. Here is a personal example. When I know that the transaction is in line with my plan and the market operates as expected, even if the transaction is not completed yet, I find that I feel a high level of confidence that I did not feel forced to look at the screen. I do not feel anything of concern and relaxed sense of "confidence" that my position is good. However, if I am in the market, and did not feel "right, even if the market moves against me, I have гляжу on the screen, my breath a little more than petty, and I see no migaya. It may take five minutes, but I will still sit in exactly the same position on his chair. I also know of some graphical models, in which I participate when I begin to weary or blow. I know from experience that I will most likely reduce its level of vigilance in these moments and, therefore, I try to stop trading when I feel the same way.

The longer a trader trades on the market, the more he realizes that for the higher maximums can be followed by lower minimums - this is the only thing to always be alert. Many winning sports teams have won championships, building a tremendous defense. However, the ultimate goal of trade is to do more than just survive, and actually earn a random gifts that can offer the market. Therefore, just as important to recognize how you feel, being in a condition which can lead to errors in reasoning, it is equally important to determine the state when you can confidently move forward. This condition, when it's time to enter the market and stay there with a strong trend movement. Confirmation of winning the deal comes not only from the indicators, but also from our own physical condition, which gives the feeling of being in sync with the market. Ultimately, traders who reach this trade will be most successful. As time passes, the experience will be the most important asset trader. Every day, the trader gets more experience on how he feels signing the best deal and which of his own behavior led to trouble. As soon as he will explore the models that lead to mistakes, he will be much easier to make these mistakes less frequently. The less voluntary error, so, ultimately, more sustainable will be the curve of his assets.

Good time to tradeSometimes the market can be boring times when easy to wonder whether to come back ever again "good times". Keep in mind that the volatile market movements. In any market can be vyalye long periods without any significant movements or periods of erratic volatile movements in both directions. The market rarely moves consistent with moderate fluctuation. Traders who do not even have a strong temperament, will have great emotional fluctuations. Experienced traders know that there is always one or two heavy-hearted period of the year, and these times call for great endurance and patience. If the trader does not have enough experience in this business, he must be alert so as not to force events and do not exceed the trade regime.

It is possible to break the model, which leads to more emotional recession? Is it possible to develop equanimity? These are areas that every trader will need to continuously fight. Even many professional traders make mistakes, after many years of very successful career. It takes only one incident where something is beginning to shrink from them, and they were diverted by external events such as divorce, illness or family problems in the business. External distraction can easily disrupt attention and concentration.

How to deal with personal challenges

Traders, who from time to time have emotional challenges or problems in their trading career by no means alone are. These challenges are part of business. Listen to your body and its signals - it always gives signs of bad habits. But may be some steps that will help protect you against each trader's own "Achilles five. Just look at the specific problem or challenge. For example, a trader may have the tendency to give a three-week return for the two days. Sometimes it is useful to identify the conditions that the previous period, when a trader becomes a "vulnerable". Does he feel himself likuyuschim, reaching new highs on your account? Or whether it was diverted events that took place outside the trade? Trader should learn to recognize the various sides of their personality that affect their trade, because these features will never go away. In the end, we are not robots - we are real people. But when we can recognize the patterns of feelings and emotions that we feel, before they started to bring trouble, we are less likely to make a deal, which is not part of our game plan. Keep trading plan every day. He is insured from entering into spontaneous transactions. It also protects the trader from the use of inappropriate strategies for the day, reminding him that the market is changing from period to period of development trend of variability. Trader can identify in advance the type of the period in which it is located, and be prepared to apply the appropriate strategy for the day. Traditions and rituals are the tools in order to remain prepared in the present and can help protect the trader's conduct consistent with his trading plan. Everyone needs tools to create structure and order in the otherwise very abstract game. Maintains records, such as the logical background of transactions, statistics or market indicator, is an excellent means of discipline, which helps to remain consistent. Also effective tool is a set of small goals every day. Such a goal might be to have a winning three consecutive days, or a clear plan to follow the trade during the day. This also may be - do not enter more than three transactions per day and to refrain from exceeding the trade regime. Or, open position in each five-bull or bear flag that formed. The small trader's goal should reflect his own style of trading, the needs and weaknesses.

Trader should learn to distinguish between errors caused by the market environment and the voluntary mistakes that he makes himself. He should avoid doing on the efforts, if the current market environment is unfavorable, or his normal style of trading is not suitable for current conditions. A good way to correct behavior is to always think about the desired result. Write it next to the trading screen. Read it every morning.

Each time a trader is going to take any action, it must ask itself whether it has its desired goal. It should provide a sense of victorious after a short-term goals and overplay this feeling many times in their minds as motivation. It is very clear to imagine that the goal is related to the market every day, not only in the long run. Traders should consider the possibility of a friend, a trader with whom they can share their daily results. Most traders will make a greater success if they would be responsible to anyone for the performance of their trade. They are less likely to allow a big loss to get out of control. If their reasoning harm, at least, there is someone else who can draw their attention to the fact that a trader deviates from its plan or may be in need of a break. Dude on the trade - this is not the one who offers advice on the market or in relation to specific transactions. If the trader feels the need to ask anyone's opinion on the council or the market, it is sure sign that he should not be at this point in the market. Dude should be the same coach who can lift the mood, or enhance, if necessary, motivation, or to serve a foreign party to indicate when a trader is in the destructive behavior of the commercial, which ends with a long recession. Markets can change quickly enough. Less biased trader can be more easily adjusted to the environment. If he starts to develop a bias that is not accompanied by technical factors, but due to emotions or weakness of the discourse, the signals of his body most likely did not tell him. Most professionals know when they are in a bad deal and they know when they make a mistake. The more the trader makes transactions, and the more experience he gets, the sooner he will learn to recognize their own personal traits, which indicate that he really is in a bad deal, irrespective of whether their level of stop-order or not. As long as the trader is able to benefit from this knowledge, this is another excellent reason to always have placed a stop order on the market! It is equally important that he remembered how his body feels when it is under control and has a winning attitude. The best traders go a step further and added to a winning position. The green light is lit! The foot on the gas! This concept is as important as learning to recognize when a transaction is not working.

What lesson should be learnedTrader, which passes through a losing period must ask ourselves, "What lesson should I explore?" "What should I do to change this situation?" He should never do yourself a disservice, as we look back at the graphics model with regret and saying "I had to see it." The problem is not that he sees or does not see. The problem always is how the trader managed transaction after it entered the market. Managing trade - is a process of determining the level of initial risk and then stop-movement orders from this initial level as the market movement or placement of orders on the way out of position, whether at a profit or loss.

Trader must rely on their best arguments at a time when a deal and manage it. From experience, he can learn to recognize behavioral patterns that he felt when his judgments can not be 100 percent true - the days when he was inclined to reduce their vigilance and the market can punish him. And then, after some time, the curve of the assets of the trader begins to improve steadily as it will do less and less voluntary mistakes!

Few traders stop to consider the context that determines the Forex market, although it would be all. Since the Forex market is increasingly playing the role of retail investment environment, you need as much detail as possible to explore all the nuances of the environment and the rules that will survive and successfully operate in the investment environment.

Analysis

• Who: to know the Forex market actors that shape the markets;• Why: to understand the nature of forex market and its attendant opportunities;• Where: Find the best dealer, is suited to your goals;• What: choose a shopping tool, based on your preferences;• When: To determine the time when the transaction would be most effective;• How to: pick up a set of analytical tools that really improve your trading.

Action

• Draw up a personal trading plan;• Find solutions that will help you execute your trading plan, step by step.

Analysis

For most traders, a comprehensive trading plan is a false ideal. In particular, in the FOREX market the illusion of easy money often distracts the trader from the reality, which is a difficult and painstaking work. But how can attest to anyone who has achieved success in trade, commerce - so, above all, discipline. Trading requires a plan based on extensive market knowledge and ability to carefully and consistently apply this knowledge. The main component of any trading plan - an understanding of context, which defines the surrounding market environment.

Six of the market ForexMovement of prices in the FOREX market to resemble traffic shoal of fish. At one point - an absolute harmony, the next - a complete chaos. As an observer of these jambs of fish, you believe that you can accurately predict the direction in which it cannot go every time? Are you ready to bet on this?

What makes the fish go that way rather than another? Why do they operate together in an instant, moving with force and precision, and move in such a way that seems to be an infinite number of directions? There is no way to know if you can not feel that sense of fish every time they move. Pisces have an instinct as to the nature of their environment. They are born to understand the context of all the things around them, and can react accordingly. Of course, if you have such an understanding, you would have been far more accurate predictor of the movement of fish! Trading on the Forex market in this sense is not very different - we must develop a sharp sense of what is happening around us. Can we ever accurately predict every move in the FOREX market? Of course not. But we can use our understanding of the context of the market - the six forces of forex - to make better, more cost-effective choice of deals. Once we understand these forces, we can build and work within the framework of a comprehensive trading plan:

• Who sells at Forex? You must know who is participating in this market, why are they successful and how you can emulate them.• Why trade Forex? It is possible to obtain excellent income trading at Forex, but not for all participants. You are one of them?• Where you need to sell? Select service providers that can provide you with the opportunity to effectively sell your style.• What you need to sell? Select a currency pair, methods of entry, exit and management of money, which maximize your income.• When you need to sell? Deal, when the market environment is most likely to provide the best conditions in order to sell on your system.• How should you trade? Deal, using the methods that have proven their ability to provide maximum efficiency.

Knowledge of these forces and how they work, is the main component of your success as a trader. Figure 1 shows these 6 forces, their relative rarity, and their impact on profitability.

The lower you are moving to this scheme, the less you will find traders who understand an element of the overall context and the more revenue you can achieve with the trade.

WhoFar more important than knowing who trades in Forex, know who trades in Forex successfully and how they do it. Players in the Forex market work with widely varying horizons. When one of these players are in the market, the impact is proportional to force the trade initiator. This effect may play a role in the short term, a radical change in prices, and could play a long-term role in determining trends. Figure 2 shows the main participants in the market Forex.

Each group of participants has a different attitude, goal, investment horizon and market impact. A key difference among these market participants is their level of sophistication, which is determined by the following elements:• Managing money• Aims to Profit• Level of automation• Quantitative ability• The ability to study• Level of Discipline

Of course, there are sophisticated and inexperienced banks, governments, corporations, investment funds and traders. But among these segments, the individual trader has the lowest level of external control. Taking into account that the government, banks, corporations and investment funds follow the instructions and limitations (to some extent), traders are only limited by the level of their capital.

In the absence of external constraints, traders are divided into two groups: those who can impose internal constraints, ie discipline to their trading strategy, and those who can not. Those who can impose this discipline, we call the experienced trader. In a zero-sum game of trading in the FOREX market, the trader uses the hard tools and strategies that mimic instruments have a very sophisticated institutional participants to extract profits from the party, a newbie. Only hard-trader is able to achieve positive results in the FOREX market.

WhyThe volume of trades in the FOREX market in recent years has increased, as more and more individual traders to earn a living, selling it, and the popularity of riskier investment vehicles like hedge funds, has increased. The main incentive for these investors is the higher yield, but on the foreign exchange market, four major factors create a unique investment environment:

o Liquidityo Leverageo Convenienceo Cost

In any other market you can not find the conditions that are favorable to the investor, at least at first glance. However, using their advantage of these favorable factors, you should always keep in mind on their back side.

LiquidityThe liquidity of the market have a high degree of transparency, even when large transactions occur. Worldly-wise trader understands that it means: the Forex market involves very large players. Because traders are growing in their sophistication, they understand that these big players have a significant impact on the price, and monitor their entry into the market.

LeverageThe low margin requirements in the FOREX market allows to obtain the correct analysis of huge profits. However, in the case of an incorrect analysis, the multiplier effect of leverage also increases the loss.

The worst scenario - a series of consecutive losses. Knowing how many consecutive losses your system can afford is a key factor for the preservation of capital. (left - the number of consecutive losses, the top - the lever, right - the remaining percentage of capital)

AccessibilityThe fact that you need to go to sleep or spend time with his family, does not stop the functioning of the market Forex. In other markets you can trade during certain hours, usually from 6 to 10 hours, which are clearly defined. On the other hand, trade on the forex market requires a 24-hour monitoring. This can be achieved through the automated trading system or, less optimally, through a defined stop-order and limitordera or physical control of the transaction.

Price"No fees" - a marketing slogan, many dealers, that is perceived as a significant profit. But the fact that there are no commissions, does not alter the high transaction costs, spreads paid to dealers through the purchase / sale. There is no doubt that liquidity, leverage, comfort and operating costs available in the FOREX market are excellent tools for investors, but not always. As easily as these tools can be used to create capital, they may be using the wrong lead to the destruction of capital. Beginner traders destroy capital, and its sophisticated pose.

WhereOne thing is to choose a dealer, and quite another - to choose the right dealer. Offers service dealers can take many forms, and each dealer usually has one or two major features that they bring to the fore. In the analysis of the dealers, you understand and appreciate all of their proposals for the service, and then apply it to your style of trading that pick for themselves the best dealer.

Understanding the basic components of the trade plan was crucial for successful trade. All these factors work together. Trade currency pair with a wide spread, using a short-term signals the entrance and a great arm, probably will not be the most successful strategy. On the contrary, trading foreign currency pair with a narrow spread, using medium-and long-term signals to the entrance with a small lever, has a greater chance of success.

In the final analysis, currency pair, the signals and the approaches to the management of money should be combined, and without controversy. Beginner traders make critical mistakes, trying to hide together strategies from different sources, instead of systematically constructing, testing and building a comprehensive plan of trade. Hard-trader, which makes this a difficult job, working with the trade, which creates opportunities for consistent profits.

WhenForex market operates 24 hours a day, but whether the market activity of the same all the time? Of course not, but many traders do not take into account this fact in their work. By studying historical price data, you can compile the following tables of market activity.

It is better to sell at the most opportune time. The table presents the average trading ranges for the four major currency pairs. One of the best ways to confirm the technical indicator - this amount. When strong, the indicators tend to be more accurate. Unfortunately, no data on the amount available for the Forex market. Use of trade ranges - following an effective tool. With these data at hand, traders can more carefully evaluate when to trade. Not only the technical indicators will generally be more accurate at different moments of the day, but there is a potential for greater profits, and the potential for lower losses at other times of the day. Consider trade on the EURUSD at 10.00 EST against trade 22:00 EST. In the first case, the average trading range is 30 points in the second - 10 points. Entrance to the market during morning trading creates some interesting opportunities - the market can go with you or against you, but you should be ready to move in any case. On the other hand, if the market goes against you by 10 points in 22:00, as far as you concern? Probably not as good as if it was 04.00.

Anyone can trade based on technical indicators. Beginner trader, in particular, ignores the importance of "when" to trade. Worldly-wise trader uses timing to their advantage, creating opportunities for profits and limit losses.

AsOnce an understanding of the external trade is over, the hard work begins: the trader must understand their own consciousness. External items are easy - they are usually rational, evidence-based, consistent and streamlined. However, the trader's mind away from all this. Trader goes through a huge number of emotions and thoughts during the trading. Some of them have a negative impact, some positive, but very rarely see a trader, who would be consistently followed his trading plan.

Emotions, or lack of discipline are the biggest enemy of every trader. This is so true, that could be argued that the discipline is a more valuable asset than the very commercial capital, because capital can be supported only with discipline. We can not say that a trader can bring some value - it does. In moments of clear, objective examination, many traders, even novices can build excellent trading system. These systems can benefit their understanding of the market Forex. However, once live, the system suddenly dilapidate.

Why?The simple reason is that emotions should not be present in the trade. Emotions compel the trader to act differently after big wins or losses. Emotions compel the trader to act is absurd when there are large movements. Emotions compel a trader to apply his trading system inconsistently. If you've done a review of successful traders, you would find many similarities. Traders understand and apply all the forces of the market Forex. They are usually traded in an incredibly simple trading systems. They use a conservative, well-thought-out philosophy of managing money, and they trade with absolute consistency. For the institutional investor, absolute consistency is not a problem because they have more staff and more resources at their disposal. For individual traders, there are three groups. Those who trades with consistency, those who traded with the manual sequence and those trading with an automated sequence. Beginners, of course, are traders who benefit from the transaction to the transaction. An individual trader who uses a consistent discipline or automation as the basis for its trading activities, maximizing their level of sophistication.

ActionWorldly-wise trader understands market forces six Forex. He works with the understanding the market environment, and this understanding lies in its commercial run. To succeed in trading on the FOREX market, you must become a skilled trader.

Showing posts with label Forex Trading Tips. Show all postsShowing posts with label Forex Trading Tips. Show all postsWednesday, July 08, 2009Trading as a game

Andy Bushak always been interested in trade. It traded at a time when I was in the Naval Academy in Annapolis, and when he was a halfback playing football for the "Cleveland Browns". However, Andy did not consider his career as a trader when started, yet he has not received adequate commercial "education." He is actively traded on his own account since mid-1980's, and sometimes sold to hedge fund. Currently, he works with Tom Joseph in the "Advanced GET" and regularly conducts seminars with Michael Kvanbekom. He has made a significant contribution to the development of many concepts of price and time, working in the "Advanced GET". In trade, he specializes in intra-day trade futures, trade on the movement of currencies and positional trade shares.

Trading as a gameTrade like a game of football. What determines the professional level of your game? Preparation is key. A whole week passes before you go out to play with opponents. You are viewing a movie from playing another team, you start to follow the team, players, etc. Then, you treniruetes. When it comes to play, you do not have to think - all that you do - this reaction. I do the same when preparing for the trade. I collect information from more market pictures. I look at some long-term charts to check the trend and see whether there is a long-term trading opportunity.

I work with some tools and Hanna Fibona chchi to obtain good levels of support and resistance. The following graph shows the price value at the time when I zafiksiroval this piece.

Daily schedule for the S & P 500 E-mini with the key Fibonacci levels

Since I did the homework, then when the market starts trading days and start to develop the model, all that I must do - is to respond appropriately. My reactions are guided by my level of support / resistance and trade strategy, based on rules that correspond to this situation.

Therefore, as a result, trade has become as easy game. Follow the schedule of shows in my day, and levels of strategy that was used with them in this case. The following report shows the actual long position entered about 50%-level recovery, after having been installed at least the 5th wave to my predefined levels. I went out 4 contracts at the level of awards / risk on the same day and left a 1 contract for the next day from placing the appropriate stop-order.

A 15-minute schedule for the S & P 500 E-mini and a list of transactions

Market position works in the same way, but you have a little more time to think about it. You conclude their transactions in the afternoon, possibly even on a weekly schedule, but it is the same process. You did your homework, the market is in your target zone, and you just react: you have your orders, and the foot and plan their exits. Maybe you leave some of them, because you can never see these prices again. Traders, who have seen me in action over the years, know that I am holding some key positions in the stocks, like IBM and AMGN in those years. What I'm trying to do - as soon as possible to move to risk status.

For example, with the shares of which are at historically low prices, I take the profit from the share positions and regulate its stop-order in such a way as to remain loss-free. If the trend develops, I will still remain at a profit. If the trend continues to evolve further, I entered the market at a price that may not give to get back.

If you have some good rules, you should get rid of unnecessary emotions that can hinder trade. Once you reach the state where you do not have to think too much and you just react to events, the emotions are under control. The only way to achieve this state is to know his subject. This is what we are trying to do in our seminars. If you know "their opponents on the playing field" (in other words, you've done the necessary homework in advance), then play with time becomes much easier. I always tell people that I have the best job in the world. I continue to trade full-time and spend seminars to communicate with other traders. For me, trading on E-mini allows you to offset the operating costs, and my position on the transaction shares typically have the highest incomes.

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Labels: Forex Trading Tips

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Saturday, June 27, 2009When The Market Goes Against You

Eyb Kofnas is president of an educational Web site for traders forex market - Learn4x.com. The greatest challenge for the trader with trading on the FOREX market there, when he opened the position, and the market begins to move in another direction. Responses to emerging situations are the true test of endurance and intelligence trader.

This paper is dedicated to offer a few strategies that can help in such cases.

Here are the traditional methods of limiting the losses:

1. Stop order: The freeze order shall establish control over the passive losses. When you open a position, you can immediately place a stop order. One of the rules for placing stop orders for the purchase, for example, it would be a stop-order on the previous wage, or at the level of support. When selling, you have to stop a warrant for a previous maximum or on the level of resistance. This allows you to control the loss against extreme movements. However, this does not guarantee the exact performance, because, depending on your broker, the majority of stop orders become market orders when they are activated. In extreme movements, your stop order will be activated, and in fact met, when the price may be too far away. The negative feature of stop orders that recent levels of support and resistance is often tested with a view to increasing the stop-orders. Many faced with a situation where the position is closed by a stop-order, and then the market started to move in a direction which was originally expected.

2. Stop-turn: In this option, you open the position to buy or sell and post stoporder with an additional lot. For example, when buying a lot of euro 86.50, you place an order for the sale of two lots of Euro 85 95. This strategy keeps you in the market, and expands your position. Of course, this does not protect you from possible re-turn the market in the initial direction in which you will find yourself on the wrong side.

3. There is no stop-orders. You open a position and leave her alone. This strategy allows the market to work. There are two disadvantages: a) when the market intensely moving, you remain attached to the wrong side. b) you have to test their patience. A bit long, people may look at the position, which continues to build up their losses. The advantage is that the currency pairs fluctuate over time and have a wide range. If you focus on the longer time scale, the price will tend to remain in the direction of the trend, which is dominant.

Fortunately, there are alternatives to these strategies. Traders are not limited to these three strategies. We'll call this new technique for risk management - Simultaneous buying and selling. Some companies that provide services in the FOREX market offers this feature. Company "FXSOL" is one of the brokers and their trading platform podserkivaet it. We recently spoke with Tom rafts from "FXSOl" on this approach.

"There are several reasons to open a multidirectional stand on the same currency pair," said Raft. First - this is the psychological advantage of the fact that to always be involved in the market. Even though the position zahedzhirovana, and the customer can not lose money because of adverse market movements, it is still emotionally involved in the market and can tailor the hedge in accordance with how the situation develops in the market. The second relates to the ability to remain involved in the market during a limited range of the market. It helps a trader to avoid quick turn, are worst enemies of traders. "

In this strategy you open a position and, if the market moves against you, then you open an opposite position. They will not vzaimozakryvat each other. The position on the purchase, there is the account in conjunction with the position to sell. What makes this really - fix the situation and allow the trader is not the time to manage risk. Say, for example, the position moves in for the purchase of lucrative direction. You can leave a position to sell as is and add to positions on a purchase.

If the market starts to move back, the position on the sale can be closed when it becomes profitable. The advantage of this approach is that it allows the trader quietly assess market conditions and does not become hostage to these conditions. Trader can choose how to balance between these positions. A full hedge occurs when a position in the buying and selling equivalent. This freezes the ratio of profits to losses. But it does not freeze position.

If the profit from the position at one side quickly reaches a certain level, they may be closed for a fixed profit. You can add more to one side and to increase one direction than another.

One of the best applications of this technique is possible when trading ranges. When there is no certain clarity in which direction to go, you can open the position to buy and to sell and let the market come to you for help. To do this, you do not need to test its strength.

While it is not absolutely oshibkoustoychivoy technology, it certainly deserves attention. Ability to be on both sides of the market at the same time is rarely used, but probably could be applied more effectively by most traders.

Forex Magazinebased on www.futuresmag.com

Labels: Forex Trading Tips, Forex Tutorials

at 5:28 PM 1 comments Links to this post

Wednesday, May 20, 2009Professionalism in the trade

If you are serious about becoming a successful trader to full-time, you can be helpful these comments. Otherwise, stop reading and do not waste your time.

To become a successful trader requires special intellectual abilities, as well as the ardent desire and self. You can be the best in the world trading system, software and platform, and yet not be successful. Why so? Almost always, your character and control over emotions determines your destiny. Everyone must change and improve the situation, so that, ultimately, to become so, by whom he wants to be in trade. Trading discipline is born out of control emotions. Typically, traders themselves are a very bitter enemy. Clearly, the market environment is critical for success, but not as critical as control of emotions. You need to gain control in order to be successful. There is no substitute for this control. As you can understand what your emotions out of control? Lack of ability to stop when you lose a good indicator.

How do you manage your emotions? Just try to develop patience and focus on the system, rather than the results of your actions. Stay immersed in the present. In other words, stay immersed in the trade, reading charts, indicators, the presence or lack of momentum in the market. This way, you are connected to the market and overcome the emotional proclivities. Do not try to outsmart the market. Stay away from the "results" or as I call it thinking "what if", because it destroys your objectivity and focus on what is important and creates a process of negative thinking. If the golfer to focus on the fact whether he will trehfutovy shock and effects of errors, instead of the implementation of impact, which is required for a successful outcome, it certainly lose this strike. It "puts a heavy cargo on the shoulders, worrying about the consequences of performance or failure of this strike. Especially if there is pressure to do a double kick, sending its share of responsibility in a team of two persons, etc. The same thing happens in commerce, except that there is usually a much larger pressure associated with this activity. This could almost be a question of "life and death" if you allow him to become one. These reflections on the "result" or "what if" makes you lose your concentration on the really important things that will help you be successful. What is important is the process of trading, performed by a step-by-step. It really is as simple as it sounds. At least it was for me. Once I had this vision in the approach to the market, I got control, in which I needed, and things started to straighten. Remember that the only thing you can control when trading in the market - this is how you react to things that you see. Controlling your emotions is crucial, with the right response to those situations that you see. Let's look at the personal aspect. I have had unfavorable family (my wife hated my trade), by a small and a large number of failures that I had to overcome, when I began trading. Familiar, does not it? The only way to get out of this situation was to develop a solution that I will be successful and to refute all of those skeptics, regardless of everything. More importantly, I decided that I achieved patience and slow down things in my world of commerce. I took this notion of "deceleration of things" from the allegations that I have ever seen in a very successful professional athletes and some of the principles of learning that I used in the training of leadership in military schools. When professional golfers, professional basketball players, and, interestingly enough, many drivers of "NASCAR" was very successful, it is like that all slows and it becomes easy to see what to do and how to do it. In the art of war, with enormous strain of battle, the same thing happen when a leader is working properly. This is like a time-lapse. With this in mind the approach I chose to trade in AB, because the market seemed to be moving more slowly than the NQ or ES. I tried to choose methods and time scales (R100 and R75), which were slower in terms of signals. This slowed things happening for me and helped to gain control over my emotions and decision-making. I was more fortunate. Then I found a chat with a man named Woody showed me a way to remain calm in the face of disaster, and remember that the course will be the best deal. Also, I found a software which allows some pretty good template to suit my purposes. However, more importantly, what I did, it took a conscious decision to learn to manage their emotions. I wanted to learn to control themselves. I do not let anything or anyone hinder me to achieve this basic goal. It worked, but every day brings a new struggle to achieve this. But once this was done once, there is confidence that helps you do it again and again. Emotions never go completely - this is quiet the panic with which the majority of traders constantly lives. You can only learn how to manage them. Do this, and will be much easier to succeed, you are thirsty.

Eyb Kofnas is president of an educational Web site for traders forex market - Learn4x.com. The greatest challenge for the trader with trading on the FOREX market there, when he opened the position, and the market begins to move in another direction. Responses to emerging situations are the true test of endurance and intelligence trader.

This paper is dedicated to offer a few strategies that can help in such cases.

Here are the traditional methods of limiting the losses:

1. Stop order: The freeze order shall establish control over the passive losses. When you open a position, you can immediately place a stop order. One of the rules for placing stop orders for the purchase, for example, it would be a stop-order on the previous wage, or at the level of support. When selling, you have to stop a warrant for a previous maximum or on the level of resistance. This allows you to control the loss against extreme movements. However, this does not guarantee the exact performance, because, depending on your broker, the majority of stop orders become market orders when they are activated. In extreme movements, your stop order will be activated, and in fact met, when the price may be too far away. The negative feature of stop orders that recent levels of support and resistance is often tested with a view to increasing the stop-orders. Many faced with a situation where the position is closed by a stop-order, and then the market started to move in a direction which was originally expected.

2. Stop-turn: In this option, you open the position to buy or sell and post stoporder with an additional lot. For example, when buying a lot of euro 86.50, you place an order for the sale of two lots of Euro 85 95. This strategy keeps you in the market, and expands your position. Of course, this does not protect you from possible re-turn the market in the initial direction in which you will find yourself on the wrong side.

3. There is no stop-orders. You open a position and leave her alone. This strategy allows the market to work. There are two disadvantages: a) when the market intensely moving, you remain attached to the wrong side. b) you have to test their patience. A bit long, people may look at the position, which continues to build up their losses. The advantage is that the currency pairs fluctuate over time and have a wide range. If you focus on the longer time scale, the price will tend to remain in the direction of the trend, which is dominant.

Fortunately, there are alternatives to these strategies. Traders are not limited to these three strategies. We'll call this new technique for risk management - Simultaneous buying and selling. Some companies that provide services in the FOREX market offers this feature. Company "FXSOL" is one of the brokers and their trading platform podserkivaet it. We recently spoke with Tom rafts from "FXSOl" on this approach.

"There are several reasons to open a multidirectional stand on the same currency pair," said Raft. First - this is the psychological advantage of the fact that to always be involved in the market. Even though the position zahedzhirovana, and the customer can not lose money because of adverse market movements, it is still emotionally involved in the market and can tailor the hedge in accordance with how the situation develops in the market. The second relates to the ability to remain involved in the market during a limited range of the market. It helps a trader to avoid quick turn, are worst enemies of traders. "

In this strategy you open a position and, if the market moves against you, then you open an opposite position. They will not vzaimozakryvat each other. The position on the purchase, there is the account in conjunction with the position to sell. What makes this really - fix the situation and allow the trader is not the time to manage risk. Say, for example, the position moves in for the purchase of lucrative direction. You can leave a position to sell as is and add to positions on a purchase.

If the market starts to move back, the position on the sale can be closed when it becomes profitable. The advantage of this approach is that it allows the trader quietly assess market conditions and does not become hostage to these conditions. Trader can choose how to balance between these positions. A full hedge occurs when a position in the buying and selling equivalent. This freezes the ratio of profits to losses. But it does not freeze position.

If the profit from the position at one side quickly reaches a certain level, they may be closed for a fixed profit. You can add more to one side and to increase one direction than another.

One of the best applications of this technique is possible when trading ranges. When there is no certain clarity in which direction to go, you can open the position to buy and to sell and let the market come to you for help. To do this, you do not need to test its strength.

While it is not absolutely oshibkoustoychivoy technology, it certainly deserves attention. Ability to be on both sides of the market at the same time is rarely used, but probably could be applied more effectively by most traders.

Andy Bushak always been interested in trade. It traded at a time when I was in the Naval Academy in Annapolis, and when he was a halfback playing football for the "Cleveland Browns". However, Andy did not consider his career as a trader when started, yet he has not received adequate commercial "education." He is actively traded on his own account since mid-1980's, and sometimes sold to hedge fund. Currently, he works with Tom Joseph in the "Advanced GET" and regularly conducts seminars with Michael Kvanbekom. He has made a significant contribution to the development of many concepts of price and time, working in the "Advanced GET". In trade, he specializes in intra-day trade futures, trade on the movement of currencies and positional trade shares.

Trading as a gameTrade like a game of football. What determines the professional level of your game? Preparation is key. A whole week passes before you go out to play with opponents. You are viewing a movie from playing another team, you start to follow the team, players, etc. Then, you treniruetes. When it comes to play, you do not have to think - all that you do - this reaction. I do the same when preparing for the trade. I collect information from more market pictures. I look at some long-term charts to check the trend and see whether there is a long-term trading opportunity.

I work with some tools and Hanna Fibona chchi to obtain good levels of support and resistance. The following graph shows the price value at the time when I zafiksiroval this piece.

Daily schedule for the S & P 500 E-mini with the key Fibonacci levels

Since I did the homework, then when the market starts trading days and start to develop the model, all that I must do - is to respond appropriately. My reactions are guided by my level of support / resistance and trade strategy, based on rules that correspond to this situation.

Therefore, as a result, trade has become as easy game. Follow the schedule of shows in my day, and levels of strategy that was used with them in this case. The following report shows the actual long position entered about 50%-level recovery, after having been installed at least the 5th wave to my predefined levels. I went out 4 contracts at the level of awards / risk on the same day and left a 1 contract for the next day from placing the appropriate stop-order.

A 15-minute schedule for the S & P 500 E-mini and a list of transactions

Market position works in the same way, but you have a little more time to think about it. You conclude their transactions in the afternoon, possibly even on a weekly schedule, but it is the same process. You did your homework, the market is in your target zone, and you just react: you have your orders, and the foot and plan their exits. Maybe you leave some of them, because you can never see these prices again. Traders, who have seen me in action over the years, know that I am holding some key positions in the stocks, like IBM and AMGN in those years. What I'm trying to do - as soon as possible to move to risk status.

For example, with the shares of which are at historically low prices, I take the profit from the share positions and regulate its stop-order in such a way as to remain loss-free. If the trend develops, I will still remain at a profit. If the trend continues to evolve further, I entered the market at a price that may not give to get back.

If you have some good rules, you should get rid of unnecessary emotions that can hinder trade. Once you reach the state where you do not have to think too much and you just react to events, the emotions are under control. The only way to achieve this state is to know his subject. This is what we are trying to do in our seminars. If you know "their opponents on the playing field" (in other words, you've done the necessary homework in advance), then play with time becomes much easier. I always tell people that I have the best job in the world. I continue to trade full-time and spend seminars to communicate with other traders. For me, trading on E-mini allows you to offset the operating costs, and my position on the transaction shares typically have the highest incomes.

There are probably people out there who want to read your blog - maybe thousands of them. How do I know this? Think about it - at any given moment, there are millions of people online. Chances are, some of them are interested in what you have to say (or write, or post). I'm assuming, of course, that you are posting high quality content.

But what if you have no advertising budget for your blog? No problem! Here are some free methods you can use to get more traffic to your blog.

Three insurances people need are life, auto, and homeowner's insurance.

If people own a home, they have to have homeowners insurance. If they own a car, they have to have car insurance. This is part of the law. Nobody is going to lend you the money if you are not going to insure it. I think you have to buy life insurance, that is always number one. When you are talking about doing a financial plan for somebody, many people say, I want to put $100 a month into a mutual fund. My first response is, "Life insurance is more important, because a 30 year plan doesn't help you if you die in three days."have seen people who have left their families destitute. In fact, I had one about six months ago where a husband died and the couple had just adopted a baby. She lost the house within a month, because she didn't work outside the home. The mortgage company doesn't care. They just see it as "we didn't get your payment, so you're kicked out". Life insurance is definitely the number one thing that needs to be purchased, and it can be done so cheap, $12, $15 and $20 a month. Depending on the person, you can get hundreds of thousands of dollars of coverage. The most important thing is to have something when you need it versus what kind.

Term Life Insurance is life insurance for a set period of time. If the insured dies during this period, the beneficiary receives a lump sum of tax-free money. Term Insurance is ideal for young families with a limited budget where as much insurance as possible is required to secure the family's well being, or in business situations such as buy-sell agreements, for mortgage coverage, or to fulfill other temporary needs.

Whole Life Insurance provides permanent coverage with level premiums and a guaranteed death benefit. It is perfect for people who think long term and whish to have plan that is not subject to investment gains and losses. The policy also gains cash value over time, allowing for flexible cancellation options. Furthermore, though coverage is life-long, you do not have to pay premiums for life. You can purchase the insurance in a predefined number of payments: the shorter the payment period, the large the discount.

Universal Life Insurance is permanent insurance with the added feature of having a tax-sheltered investments portion built into the plan. Universal Life pays off precisely at the moment when significant costs and tax implications are triggered. This timing, along with the tax-sheltered savings feature, makes Universal Life Insurance a powerful financial tool in estate preservation, leveraging, buy-sell agreements, charitable giving, and pension maximization. The tax-sheltered status of it's investments component can also allow it to help pay for itself.

Disability Insurance provides an alternate income in case of injury or illness that leaves you unable to work for an extended period of time. It is ideal for anyone who earns an income and does not have disability insurance through their employer. Depending on your profession, it could provide income during times of inability to perform your "own occupation," even though other sources of income continue. More importantly, it can provide the family's income when you can't.

Critical Illness Insurance pays a lump sum of tax-free money 30 days after the diagnosis of a covered illness. It is like having your own private health care program: If you do not wish to wait in line for health care, you can seek professional services elsewhere. Insurance companies now cover up to 21 major illnesses, and you decide how to use the money (to pay down the mortgage, take a vacation, or provide family income).

Long Term Care Insurance provides a daily benefit for in home or nursing home care. Ideal for those approaching retirement age, long term care insurance means peace of mind knowing that you will never be a burden to your loved ones. Long Term Care easily erodes one's life savings costing upwards of 40 to 60 thousand dollars a year, making this form of insurance a must for retirees.

Health & Dental Insurance covers many common medical expenses that the Government Health Insurance Plan does not, such as dental work, prescription drugs, eyeglasses, private and semi-private hospital rooms. If you do not have an employer group health plan – and, therefore, are vulnerable to health care costs not covered by your Government Health Insurance Plan – supplemental health care coverage is important.Travel Insurance

Travel Medical Insurance reimburses you for emergency medical expenses incurred while you are traveling or living in a foreign country.